HomeMy WebLinkAboutPackets - Water Utillity Commission (56)
AGENDA
WATER UTILITY COMMISSION
SPECIAL SESSION
November 18, 2024
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
SPECIAL SESSION AT OR AFTER 5:00 PM
CALL TO ORDER
ROLL CALL
CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any
issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission
members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or
respond to criticism made by speakers. However, the Commission may not discuss or take legal action on
matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what
you wish to discuss when completing the blue speaker card.
SPECIAL SESSION AGENDA
1.REVIEW AND APPROVAL OF THE OCTOBER 14, 2024 REGULAR SESSION MEETING MINUTES
2.WELCOME WATER UTILITY COUNCIL LIAISON MARY MURPHY, COMMISSIONER AND STAFF
INTRODUCTIONS (P. ABRAHAM)
3.CENTRAL ARIZONA PROJECT (CAP) UPDATES (M. BASEFSKY)
4.UPDATE AND DISCUSSION ON WATER RATES ANALYSIS (M. RALLIS & P. ABRAHAM)
5.DISCUSSION AND POSSIBLE ACTION ON THE CANCELLATION OF THE DECEMBER WATER
UTILITY COMMISSION REGULAR SESSION
6.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY)
7.DIRECTOR'S REPORT
CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue
not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask
Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by
speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to
Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing
the blue speaker card.
ADJOURNMENT
POSTED: 11/15/24 at 5:00 p.m. by dt
POSTED: 11/15/24 at 5:00 p.m. by dt
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs
any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting
at 229-4700.
INSTRUCTIONS TO SPEAKERS
Members of the public have the right to speak during any posted public hearing. However, those items not
listed as a public hearing are for consideration and action by the Commission during the course of their
business meeting. Members of the public may be allowed to speak on these topics at the discretion of the
Chair.
If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located
on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the
speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to
Audience,” please specify what you wish to discuss when completing the blue speaker card.
Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in
addressing.
1. For the record, please state your name and whether or not you are a Town resident.
2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only
be allowed to address the Commission once regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During “Call to Audience”, you may address the Commission on any issue you wish.
5. Any member of the public speaking must speak in a courteous and respectful manner to those present.
Thank you for your cooperation.
“Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance
with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the
Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board,
Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a
member of the audience only.”
Water Utility Commission 1.
Meeting Date:11/18/2024
Submitted By:Maritza Valenzuela, Water
SUBJECT:
REVIEW AND APPROVAL OF THE OCTOBER 14, 2024 REGULAR SESSION MEETING MINUTES
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
BACKGROUND OR DETAILED INFORMATION:
OCTOBER 12, 2024 REGULAR SESSION MEETING MINUTES TO BE REVIEWED FOR APPROVAL (OR
APPROVED WITH CHANGES)
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve (approve with changes) the October 14, 2024 regular session meeting minutes
Water Utility Commission 3.
Meeting Date:11/18/2024
Submitted By:Maritza Valenzuela, Water
SUBJECT:
CENTRAL ARIZONA PROJECT (CAP) UPDATES (M. BASEFSKY)
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
PRESENTATION AND UPDATES ON THE CENTRAL ARIZONA PROJECT INFORMATION
BACKGROUND OR DETAILED INFORMATION:
Central Arizona Project (CAP) is a canal that diverts water from the Colorado River and delivers water to Maricopa,
Pinal and Pima Counties. It is Arizona's largest resource for renewable water supplies.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
Attachments
ITEM 03- CAP UPDATES
YOUR WATER. YOUR FUTURE.
Where we’ve been
Where we are
Where we’re going
Mitch Basefsky
November 18, 2024
Colorado River Basin
Supplies water to 40 million people
Provides water to Salt Lake City, Las Vegas,
Phoenix, Los Angeles, San Diego, and Denver
Includes 30 Tribes
Irrigates ~5 million acres of farmland
Includes 60 million acre-feet of storage capacity
Generates clean hydropower for the Western
power grid
Supports National Parks, wildlife refuges,
recreation areas and monuments
2 SAWUA
YOUR WATER. YOUR FUTURE.
Central Arizona Project
3 SAWUA
YOUR WATER. YOUR FUTURE.
•More than 80% of Arizona’s
population (6 million+ people)
•3 Counties – Maricopa, Pinal and Pima
•11 tribal nations
•CAP supply is allocated by contract:
• 54% to municipal/industrial
• 46% to tribes
• Agricultural priority for excess water
YOUR WATER. YOUR FUTURE.
Where we’ve been
Where we are
Where we’re going
Mitch Basefsky
November 18, 2024
Law of the River
5 SAWUA
YOUR WATER. YOUR FUTURE.
1992 – Grand Canyon Protection Act
2004 – Arizona Water Settlements Act
2005 – Multi-Species Conservation Program
2007 – Colorado River Interim Guidelines
2017 – Minute 323 to the Mexican Water Treaty
2019 – Drought Contingency Plan (DCP)
2021 – 500+ Plan
2023 – Lower Basin interim proposal
2024 – Minute 330 to the Mexican Water Treaty
1922 – Colorado River Compact
1928 – Boulder Canyon Project Act
1944 – Mexican Water Treaty
1948 – Upper Colorado River Basin Compact
1956 – Colorado River Storage Project Act
1964 – AZ v. CA US Supreme Court Decision
1968 – Colorado River Basin Project Act
1970 – Coordinated Long-Range Operation of Colorado
River Reservoirs
Citations:
CAP - https://www.cap-az.com/about/history-of-cap/law-of-the-river/
Reclamation - https://www.usbr.gov/lc/region/pao/lawofrvr.html
1922: Colorado River Compact
First agreement to legally connect the
Colorado River Basin states
Apportions 8.5 million acre-feet of
beneficial use to the Lower Basin and 7.5
million acre-feet of beneficial use to the
Upper Basin
• Subject to the Upper Basin obligation to
deliver 7.5 million acre-feet (plus one-half
the Mexico Treaty obligation) to the Lower
Basin over a rolling 10-year period
Arizona did not ratify until 1944
6 SAWUA
YOUR WATER. YOUR FUTURE.
1928 - Boulder Canyon Project Act
Authorized construction of Hoover Dam
Apportioned Colorado River water
among the Lower Basin states
• Arizona – 2.8 maf
• California – 4.4 maf
• Nevada – 300,000 acre-feet
Authorized construction of the All-
American Canal
7 SAWUA
YOUR WATER. YOUR FUTURE.
1968 – Colorado River Basin Project Act
Authorized the Bureau of
Reclamation to fund and construct
Central Arizona Project
Created a junior priority in the
Lower Basin for CAP water
Directed the U.S. Secretary of the
Interior to develop a plan for
augmenting the Colorado River
supply
8 SAWUA
YOUR WATER. YOUR FUTURE.
2007 – Interim Guidelines
Established a shortage framework
for the Lower Basin based on
elevations in Lake Mead
Incentivized storage of water in
Lake Mead through Intentionally
Created Surplus
Coordinated operations of Lake
Powell and Lake Mead
20-year term – 2007-2026
9 SAWUA
YOUR WATER. YOUR FUTURE.
YOUR WATER. YOUR FUTURE.
Where we’ve been
Where we are
Where we’re going
|4
Snowpack vs. Runoff
(% of average)
Snowpack Runoff
2020 105%61%
2021 86%37%
2022 90%63%
2023 161%140%
2024 114%83%
Snowpack and Runoff
YOUR WATER. YOUR FUTURE.
5 SAWUA
CAP Priorities
6
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Ac
r
e
F
e
e
t
NIA
Other Excess
P3
Ag Pool
Indian M&I
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Ac
r
e
F
e
e
t
NIA
Other Excess
P3
Indian M&I
Ï
512 KAAFg PRooelduction
Ô
Full Supply Tier 1 Shortage
YOUR WATER. YOUR FUTURE.
YOUR WATER. YOUR FUTURE.
Where we’ve been
Where we are
Where we’re going
JUNE 2023
Reclamation publishes
NOI to Prepare EIS -
initiates NEPA Process -
Begins public Scoping
Period
FALL 2023
Reclamation develops Scoping
Summary Report with
anticipated Purpose & Need
SPRING – FALL 2024
Reclamation prepares
Draft EIS
DECEMBER 2024
Publication of Draft EIS with
public comment period to follow
Public Scoping Period –
opportunity for public to provide
input on scope of EIS and Purpose
and Need for Proposed Action
JUNE – AUGUST 2023
Development of EIS Operational
Alternatives by Reclamation,
partners, and stakeholders
FALL 2023 – SPRING 2024
2025 – 2026
Publication of Final EIS and
Record of Decision issued
Post-2026: Proposed Schedule
15
YOUR WATER. YOUR FUTURE.
Overview of Proposed Alternatives
Proposed
Alternative
Lower Basin Shortage
Guidelines
Lake Powell & Lake
Mead Coordinated
Operations
Storage & Delivery
Mechanism for
Conserved & Non-
System Water
Lower Basin Surplus
Guidelines
Activities Above Lake
Powell
Upper Division
States’ Proposed
Alternative (UDS)
Lower Basin reductions ramp from 0 maf at 92% (Powell + Mead contents) to 1.5 maf (75%) with a total of 3.9 maf (18%) . Lake Powell
and Lake Mead operations are independent. Limits releases from Lake Powell to less than 8.1 MAF except when above 3670’ (81% full).
Activities above Powell to be part of a parallel process. Proposes conservation mechanism in Lake Mead (Lower Basin water) and Lake
Powell (Upper Basin water) that are operationally neutral.
Lower Division
States’ Proposed
Alternative (LDS)
Lower Basin reductions ramp from 0 maf at 69% (total system contents) to 1.5 maf (58%), with a total of 2.7 maf (23%). Upper Basin
reductions begin when the Lower Basin reductions exceed 1.5 maf - ramping from 0 (38%) to 1.2 maf (23%). Lake Powell releases are
based on CRSP percent capacity and historical Upper Basin consumptive use and include balancing releases (8.5-11 maf) in certain
conditions. Also includes a large (5-10 maf) operationally neutral conservation mechanism in Lake Mead.
Gila River Indian
Community’s
Proposed
Alternative (GRIC)
Modifies LDS Lower Basin reduction strategy to start with 1.3 MAF of reductions at 90% (total system contents) for evaporation and
system losses. Reductions above 1.5 maf are proportionally distributed between the Upper and Lower Basins. Maintains the LDS Powell
release strategy. Lower Basin evaporation and system losses reductions distributed proportional by reach, and reductions above 1.3
maf distributed both pro-rata and by priority.
Cooperative
Conservation
Proposed
Alternative (NGO)
Implements an operationally neutral “conservation reserve” that allows storing conserved water in either Lake Powell or Lake Mead for
ecological benefits or infrastructure protection. Lake Powell and Lake Mead releases based on combined storage and recent hydrology.
Maintains Lake Powell in target zone to benefit Grand Canyon resources. Lower Basin reductions begin at 80% and can reach up to 5
maf under extremely dry hydrology.
Continued Current
Strategies
comparative
baseline (CCS)
Assumes a continuation of existing agreements (2007 Interim Guidelines as amended by the 2024 SEIS, 2019 DCPs, Minute 323 and the
Binational Water Scarcity Contingency Plan)
Summary & Next Steps
17 – Post-2026 Status Update Webinar - 10/10/24
•Goal of NEPA alternative development phase is to develop a reasonable –
and broad – range of alternatives
•Many operational concepts for alternatives have been submitted by a
wide range of Basin partners and stakeholders
•Throughout this phase, Reclamation has invested significant time to work
with stakeholders to understand and refine proposals and explore areas
of overlap
•Reclamation has not made a final determination on the NEPA alternatives
that will be carried forward for consideration in the Draft EIS
•Release of range of NEPA alternatives anticipated in December 2024
YOUR WATER. YOUR FUTURE.
Thank you
Water Utility Commission 4.
Meeting Date:11/18/2024
Submitted By:Maritza Valenzuela, Water
SUBJECT:
UPDATE AND DISCUSSION ON WATER RATES ANALYSIS (M. RALLIS & P. ABRAHAM)
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
ITEM 04- WATER RATES ANALYSIS
Water Utility Commission
November 18, 2024
Oro Valley Water Utility
Update & Discussion on Water
Rates Analysis for FY 2025-26
Peter A. Abraham, P.E., Water Utility Director
Mary Rallis, C.P.A., Water Utility Administrator
Water Rates Update & Discussion Outline
Purpose
Water rate analysis goals
Water rate assumptions
Historical & Projected CAP Delivery & CAP Wheeling Costs by year
Historical & Projected Personnel & Power Costs by year
Historical & Projected O&M minus CAP Delivery & Wheeling & Power Costs
Historical & Projected Capital Costs by year
Historical & Projected Potable Water Rate Increases by year
Potable water accounts by meter size
Historical Annual Potable Water use by year
Historical Annual CAP water use by year
Historical & Projected Debt Service Schedule by year
Historical & Projected Ending Cash balance by year
Tentative Rate Schedule
Purpose
Purpose
In accordance with Mayor and Town Council Water Policies –
II.A.2.b(4), an annual review of the revenue requirements and water
rates is performed to ensure the long-term financial health of the
Water Utility. Functions of the Oro Valley Water Utility Commission
include reviewing and developing recommendations for water revenue
requirements, water rates and fee structures. The Commission
evaluates staff recommendations based on a rates analysis to ensure
the recommendations meet Town policies and bond covenants.
Develop water rates that generate sufficient revenue to:
Water Rates Analysis Goals
Meet revenue and cash reserve requirements
Meet debt service coverage requirements
Ensure revenue stability
Maintain the overall financial health of the Utility
The water rates shall also:
Promote water conservation
Be the minimum necessary to avoid rate shock
Adapt to changing rate drivers and consumer trends
Be equitable between customer classifications
Recover the cost of service (Potable & Reclaimed)
Assumptions Consistent with the General Fund
Water Rates Analysis Assumptions
Personnel costs
Increases is ASRS contributions
Increases in healthcare costs
Inflation rates
Projected at 3% annually during the 5-year projection period
SFR growth rates
Projected at 565 SFR’s during the 5-year projection period
Interest income
Interest rates are projected at 3% annually during the 5-year projection
period
Assumptions specific to the Water Utility
Water Rates Analysis Assumptions
Personnel costs
No new employees were added during the 5-year projection period
Increasing CAP water delivery & wheeling costs
900,000 water volumn in FY 2025/26 – 9% increase in delivery charge
Wheeling costs have historically been increasing 4-6 % annually
Increasing reclaimed water delivery costs
Reclaimed water delivery costs remain stable over the 5-year projection period
Existing System Capital Projects
Cash funding of capital projects over the 5-year projection period
3500000
3000000
2500000
2000000
1500000
1000000
500000
0 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
CAP Delivery Cost
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
0.00 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
City of Tucson CAP Wheeling Costs
Historical & Projected CAP Delivery & Wheeling Costs
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
$2,952,249 $3,059,140 $3,144,390 $3,141,492 $3,424,009 $3,410,629 $3,233,737 $3,519,661 $3,616,586
$3,992,428 $4,120,197
Personnel Costs
1200000
1000000
800000
600000
400000
200000
0 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
Power Costs
Historical & Projected Personnel & Power Costs
4,000,000.
0
3,500,000.
0
3,000,000.
0
2,500,000.
0
2,000,000.
0
1,500,000.
0
1,000,000.
0
500,000.0
0.0 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
Operations & Maintenance Costs
Historical & Projected O&M Minus CAP Delivery & Wheeling & Power Costs
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Es
t
i
m
a
t
e
d
F
Y
2
0
2
5
/
2
6
Capital Costs
Historical & Estimated Capital Costs
Pe
r
c
e
n
t
a
g
e
i
n
c
r
e
a
s
e
%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Ac
t
u
a
l
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
Potable Rate Increases for a 5/8-inch SFR @ 7,000 gallons/month
Historical & Projected Potable Rate Increases by Year
6"4"3"1 1/2"2"1"3/4"5/8"
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Nu
m
b
e
r
o
f
M
e
t
e
r
s
Meter Size
4 (0.02%)9 (0.04%)66 (0.31%)220 (1.02%)256 (1.19%)
836
(3.88%)
2,035
(9.45%)
18,104
(84.09%)
Potable Water Accounts by Meter Size
Ac
r
e
f
e
e
t
(
A
F
)
9000
8000
7000
6000
5000
4000
3000
2000
1000 Ac
t
u
a
l
F
Y
2
0
1
5
/
1
6
Ac
t
u
a
l
F
Y
2
0
1
6
/
1
7
Ac
t
u
a
l
F
Y
2
0
1
7
/
1
8
Ac
t
u
a
l
F
Y
2
0
1
8
/
1
9
Ac
t
u
a
l
F
Y
2
0
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
0
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
0
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
0
2
3
/
2
4
Bu
d
g
e
t
F
Y
2
0
2
4
/
2
5
Pr
o
j
e
c
t
e
d
F
Y
2
0
2
5
/
2
6
* 6,752
* 7,092
* 7,739
* 6,732
* 7,163
* 7,768
* 7,383
* 6,919
* 7,361
Potable water use FY 15/16 through FY 23/24
Historical Annual Potable Water Use
Ac
r
e
f
e
e
t
(
A
F
)
4000
3500
3000
2500
2000
1500
1000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
1,849
1,994 1,981 2,020
2,124
2,484 2,510 2,584
2,386
2,572
2,700
3,000 3,000
3,800
Annual CAP Deliveries 2014-2027
Historical & Estimated Annual CAP Water Use
Historical & Projected Debt Service Schedule
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0 Ac
t
u
a
l
F
Y
1
8
/
1
9
Ac
t
u
a
l
F
Y
1
9
/
2
0
Ac
t
u
a
l
F
Y
2
0
/
2
1
Ac
t
u
a
l
F
Y
2
1
/
2
2
Ac
t
u
a
l
F
Y
2
2
/
2
3
Ac
t
u
a
l
F
Y
2
3
/
2
4
Es
t
i
m
a
t
e
d
F
Y
2
4
/
2
5
Es
t
i
m
a
t
e
d
F
Y
2
5
/
2
6
Es
t
i
m
a
t
e
d
F
Y
2
6
/
2
7
Es
t
i
m
a
t
e
d
F
Y
2
7
/
2
8
Es
t
i
m
a
t
e
d
F
Y
2
8
/
2
9
Es
t
i
m
a
t
e
d
F
Y
2
9
/
3
0
Historical & Estimated Ending Cash Balance
Potable Water Rate Setting Methodology for FY 25/26:
Water Rates Analysis Goals for FY 25/26
Modest increase to the Potable base rate: 3%-5%
Last years base rate increase was 5%
Modest increase to the Potable Commodity Tiers 1 & 2: 3%-5%
Last years Potable Commodity Tiers 1 & 2 increase was 10% & 25% respectively
No increase to Commodity Tiers 3 & 4 due to large increase in these Tiers last FY
Last years Potable Commodity Tiers 3 & 4 increase was 35% & 40% respectively
No increase to the groundwater preservation fee
Last years groundwater preservation fee increase was 11%
Goal: Keep overall rate increase below 5% for a residential customers in Tier 1
Last years overall rate increase for a residential customer in Tier 1 was 7.9%
Reclaimed Water Rate Setting Methodology for FY 25/26:
No planned changes for the reclaimed water base rate or commodity rate
Tentative Schedule
11/18/24 WUC Meeting: - Update & Discussion On Rates Analysis
01/13/25 WUC meeting: - Update & Discussion on Rates Analysis
- Possible Recommendation to Town Council on
proposed water rates
03/05/25 Town Council: - Notice of Intent (NOI) to change water rates
03/06/25 Publish public hearing date on Town website:
- Minimum 60-day notice prior to Public hearing date
03/06/25 Publish NOI: - Minimum 20-day notice prior to Public hearing date
06/04/25 Town Council: - Public Hearing (60 days from NOI)
- Council considers adoption of water rate change
07/05/25 New rates become effective (30 days after adoption)
Water Rates Analysis Discussion
Water Utility Commission 7.
Meeting Date:11/18/2024
Submitted By:Maritza Valenzuela, Water
SUBJECT:
DIRECTOR'S REPORT
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
DIRECTOR'S REPORT TO INCLUDE UPCOMING TOWN EVENTS AND MEETINGS AND COLORADO RIVER
UPDATES
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
ITEM 07- DIRECTOR'S REPORT
Peter A. Abraham, P.E.
Water Utility Director
Water Utility Commission Meeting
October 18, 2024
Oro Valley Water Utility
Director’s Report
Upcoming Meetings
November 20, 2024 Town Council Regular Session
Council Chambers @ 6 p.m.
December 4, 2024 Town Council Regular Session
Council Chambers @ 6 p.m.
December 9, 2024 Water Utility Commission Meeting
Hopi Conference Room @ 5 p.m.
December 18, 2024 Town Council Regular Session
Cancelled – Holiday Break
December 19, 2024 Town Volunteer Appreciation Dinner
El Conquistador Resort @ 6 p.m.
Presidio Ballroom
January 8, 2025 Town Council Regular Session
Council Chambers @ 6 p.m.
January 13, 2025 Water Utility Commission Meeting
Hopi Conference Room @ 5 p.m.
OV’s Path Forward – Resident Working Group
•All board and commission members expected to
participate
•Begin in January
•Most meetings will be online with in-person, as
needed
•Number of meetings will vary
•Commit to roughly 4-6 hours a month throughout
May
¾Attend as many meetings as possible
¾Come prepared
¾Respect all views
¾Drive towards consensus
¾Collaborate with other members and staff
¾Create a plan that stays true to the direction
provided by residents in Phase 1
Sign up on OVPathForward.com
Thank You